The Zeon Company had a flood on July 5, 2017, that destroyed all of its inventory. The salvaged accounting records contained the following information:

Required 

Determine the amount of inventory lost by Zeon as a result of the flood. Zeon has a December 31 year-end. Round the gross profit ratio to the nearest whole percentage point.

Transcribed Image Text:

Sales, January 1 to July 5.. Net merchandise purchased Jan. 1 to July 5.. . Additional information was determined from the 2016 annual report: Income statement: Sales. . Cost of goods sold . Balance sheet: Merchandise inventory. . Zeon was unable to salvage any usable inventory after the water subsided. $ 737,650 ......... 414,900 $2,122,550 1,337,175 131,200